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RTF certainly does handle pictures - save a DOC file containing pictures as RTF, and then load it back into Word, and you'll see this. The problem is that, because RTF was created to be a file interchange format, rather than a storage format, it deliberately encodes things in a very simplistic manner. In particular it stores pictures with each pixel represented as ASCII text, which bloats the file enormously. I've encountered situations where a 2MB DOC file containing a few pictures turns into a 25MB RTF file. RTF is not a good choice for files containing a lot of pictures!
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